Aurobindo Pharma is expected to show strong earnings growth in Q4 on sustained traction in the US business ( which is around 58 percent of formulation sales) that may grow between 23-26 percent YoY. Earnings will be announced on May 30.
US business growth may be aided by more than 30 ANDA launches in the US over last one year while Europe is likely to be subdued due to low growth.
Currency volatility impact on Rest of the World sales will be closely watched while API (active pharmaceutical ingredients) sales may be similar to Q3 which grew at around 3 percent..
Profit is expected to increase 39.7 percent to Rs 564 crore and revenue is likely to jump 17.7 percent to Rs 3,723 crore compared to year-ago period, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) may grow 36 percent year-on-year to Rs 893 crore and margin may expand 300 basis points to 24 percent in Q4.
Analysts say acquisition made in Europe, which is around 23 percent of FY15 sales, is likely to turn profitable by FY16-end and foray into US nutraceuticals business through acquisition of Natrol may eventually broaden horizon.
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